“Major impact on local governments” – Concerns grow over tax cuts at National Governors Conference


At the National Governors’ Conference that began in Aomori City on the 23rd, there were widespread concerns about the impact on local finances due to opposition parties gaining strength in the Senate election by campaigning for tax reductions. This resulted in the ruling parties, the Liberal Democratic Party (LDP) and Komeito, losing their majority. Governors emphasized the need to secure alternative funding sources, questioning the feasibility of laws leading to tax cuts without adequate financial plans. Aichi Governor Hideaki Omura stated, “It will affect not only prefectures but also cities and towns. Can we pass laws to lower taxes without securing funds?”

The opposition parties, in the Senate election, advocated for eliminating the temporary gasoline tax and reducing consumption tax. Fukuoka Governor Seitaro Hattori expressed concern, suggesting that election results could accelerate talks between the ruling and opposition parties. Yoshihiro Murai, chairman and Miyagi Governor, indicated that discussions could no longer be avoided and proposed focusing on discussions and recommendations to the government.

Miyazaki Governor Shunji Kono requested a responsible and careful discussion on consumption tax reductions that considers the impact on local areas and future generations. In an online exchange, Internal Affairs Minister Seiichiro Murakami stated the government doesn’t find tax reductions appropriate. Considering the ruling parties’ loss of the majority, the governors’ conference plans to urge all parties, including the opposition, to widely ensure local funding sources.

by MagazineKey4532

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